SMFG India Credit Announces Major Foreign Loan Acquisition

MUMBAI: In a significant financial move, SMFG India Credit, a leading non-bank finance company, has successfully raised USD 175 million through a foreign loan. This strategic funding, secured via a syndicated loan, is earmarked for enhancing the company's regular lending operations, as confirmed by an official statement from the Japan-run SMFG.

Collaborative Effort in Financial Arrangement

The External Commercial Borrowing (ECB) facility was meticulously arranged by Standard Chartered Bank (SCB) and CTBC Bank, marking a pivotal moment for the company formerly known as Fullerton India Credit. This move underscores the growing trend among peers to explore ECB routes for funding, despite the higher costs involved, especially in light of challenging domestic banking conditions due to regulatory changes and sluggish deposit growth.

Risk Management and Future Prospects

Understanding the potential risks, SMFG India Credit has fully hedged the facility to safeguard against foreign exchange and interest rate volatilities. "With this funding, we aim to strengthen our lending capabilities, ensuring greater access to credit for individuals and businesses while maintaining a prudent risk management framework," stated Pankaj Malik, the Chief Financial Officer.